The goal with "Rubs" will be to drop my new rents $75-100 but add in the utility payments.

My Ultimate Goal: Build a portfolio of $10k+ passive income (net) and live by the beach in San Diego within 10-12 years (and "retire").

You should be prepared to put in 10X the work that you anticipate having to do and you'll accomplish your goals.

Flipping can bring cash quickly I can see why you sold and everyone's situation and goals are different, for myself I see a huge benefit to buy and hold.

The goal here is to show you're responsible with your finances.

Especially in Colorado, which is just the best place to live in the country.Denver and Colorado Springs are slightly different, so before coming out here, I'd give some thought to your goals for this purchase.

I've seen people lose a good deals because of last minute moving of goal post by banks.

As for what you should do, it depends on your goals.

I want some sound advice and people to help introduce me to more information so that I can educate myself and work towards my goals. 

My goals aren't fully defined yet (working on that soon) but in the short term I hope to bring in enough passive income in the next 3-4 years that we can supplement my wife's salary giving her more freedom and flexibility as we look to start a family.